Hillshire shares surge on takeover bid from Pilgrim's

Shares for meat producer Hillshire Brands surged Tuesday after rival Pilgrim's Pride made a takeover bid to buy the company for $6.4 billion.

Hillshire Brands(HSH) jumpedmore than 20%. Shares for Pilgrim's Pride(PPC) also rose, by 3%.

Under the proposal, Pilgrim's Pride would pay $45 a share for Hillshire in an all-cash deal.

Hillshire said in a statement that it was open to the bid from Pilgrim's, a seller of chicken products.

"Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisers, Hillshire Brands' Board will thoroughly review the Pilgrim's Pride proposal," the company said.